In the beginning, hedging may seem easy because it is easy to make small profits and enter many trades. You’ll eventually reach a point when you have several losing trades and don’t know what to do.
I show you 8 ways to get out of an hedging trade. This is in my paid-for course.
In this tutorial, I want to show you 1 of the 8 ways that I get out of a hedged trade that didn’t work out as I expected…for free.
This won’t work for all hedged trades, but it works well for trades that have certain characteristics…which I’ll get into later in this tutorial.
To profit from a hedge trade that went against you, traders should be patient and await the next major resistance or support level. The trader can then take the trade in the opposite direction of the original trade, at the next level of support or resistance, wait for the price to pass the breakeven point, and close both trades at a profit.
At first, this entry might seem counterintuitive. It works when you can clearly see the support and resistance levels.
Let’s start with the basics.
Split Exit in Action
This video shows you…